Wife is already asleep, daughter has a friend over so looking at some possible trade ideas. Taking the ITM debit spread a step further here are some numbers to consider. Based on closing prices all 22 DTE so we are comparing apples to apples. TNA as example, this is leveraged but with excellent weekly premiums. 10 contracts on all to keep the numbers consistent. These are all about 6 points ITM on the call side or 6 points OTM for the puts.
50/60 vertical debit spread cost 8.95 for a 10 point spread at expiration. Max profit $1050. Max loss $8950 but this can be converted. 11.7% ROC for a 140.4% annualized return.
60 strike CC 58.22. Max profit $1780. Max loss 58,220 for 3% ROC or 36% annualized.
60 put requires full cash secured because leveraged. 54,471 at risk for $1020 max profit, 1.87% return or 22% annualized.
All could be rolled or hedged if needed.
I am going to experiment more with these, like the idea, the returns, limited risk and can be done in a smaller account. Also could set up a ladder for an income stream. Right now have ERX going, may add FAS and TNA in small contract size in a few weeks.
$SPX 2585/2610 What a year and it is only three months long.
Have a great Easter/Passover. Three days to enjoy on hopefully, a high note for all.
Thanks for all you help.
#Fuzzy – STO XBI Apr06’18 91 calls for 0.47.
Have a nice holiday everyone!
Enjoy the long weekend everyone! Resting up…16 underlyings with expirations next week. Gonna be fun!
Wednesday: BTC $BABA Apr 20 2.10 call for .35. Sold for 2.90 on Mar 15th.
BTC BABA Apr 13th 205 call for .20. Sold for 2.05 on Mar 6th.
STO BABA Apr 27th 200 call for 1.90
STO $FB Apr 27th 175 call for 1.60
STO $AAPL Apr 27th 180 call for 1.55
BTC $RH Mar 29th 91.5 calls for 4.30. Sold in 65/91.5 earnings strangle for 2.53 on Tuesday.
STO $RH Apr 20th 87.5/100 strangles for 4.535.
STO September 45 puts @ 1.08
STO October 40 puts @ .61
Idea from TastyTrade
Sold $XBI May 18 75/96 strangles @ 1.85
XBI currently at 88.96
#SPXcampaign Sold $SPX Apr 27th 2460/2435 puts for 1.75.
This does not fit into my approach of selling at extremes, but it is the last hour of the week and I had not sold my standard second put spread. Since VIX has not dropped too much I am not assuming the big down days are over. I will sell some additional calls if we close higher. Or puts if we sell off into the close.